Bristol Pound views: Genius or doomed to fail?

The Bristol Pound could be a safety net in the event of an economic disaster and the first step towards a more localised world, but it is vital that it circulates beyond “green sandal-wearers”.

That is the view of local currency author Dr Peter North, who in 2010 wrote “Local Money: how to make it happen in your community”.

Dr North, a lecturer at Liverpool University who gained his PhD from the School for Advanced Urban Studies at the University of Bristol, spoke to This is Bristol about the criteria required for a local currency to be successful.

“The key issue for a local currency is what does it look like?” said Dr North. “Does it look like monopoly money or is it something genuinely well done? Has it got a value on it?

“There are many local currencies and some of them are really beautiful and well produced, and they give value to the town.

“The second important thing is, are people proud of their heritage and does the local currency celebrate it?”

Turning to the geographical aspect of local currencies, Dr North said: “With too many local currencies, the area they circulate in is too small.

“People can spend it at local shops but the shops cannot source the things they are selling with it, so it goes from customer to business and straight back to the bank. What is the point?”

Asked if Bristol met the circulation criteria, Dr North said: “I think it’s close enough to being a big enough area to circulate widely. I would like to see people focusing more on production in the town, talking to councils and the Chamber of Commerce.

“Can it be used up Park Road, in Bedminster and St Andrews?”

Asked if he was surprised a city like Bristol had launched its own currency, the author, whose book explores local currencies over the past 20 years, said: “No. It’s the kind of community you would expect to do it, it’s full of greenies.

“It’s like somewhere like San Francisco, where there are a lot of alternative-minded people congregating.”

But, Dr North warned, the Bristol Pound must circulate beyond “green sandal-wearers” if it is to be a success.

Turning to the advantages of a local currency, Dr North said: “A local currency can be a safety net, especially if the coalition carries on with austerity or there’s the breakup of the Euro.

“If the Euro were to breakup you can see ATMs ceasing up, but if you have an alternative currency that’s fantastic.”

Asked what else a local currency required to be successful, Dr North said: “You have to get people to realise it works; that money keeps its value and there’s no mass inflation.

“You have to disconnect it from UK money, then you’ve got the opportunity to fuel and support the sorts of work and business you want in your community. Then you can think about production.”

Reflecting on the road ahead for the Bristol Pound, Dr North said: “It should start to work. I wish them well.

“We live in a globalised world where nearly everything is made in China; an industrialised world. If we did move to a world where we made more of the things we use, if more was produced locally, local currency can be a step towards a more localised world.

“No local currency has yet made that jump, a structural change in the economy from a deeply unsustainable to sustainable.”

Do you think the Bristol Pound will be a success? Are you excited about it? Here are some of your views:

I can't see the point, unless business offer discounts to Bristol pound users. Otherwise, why would I bother getting it? I like to buy some things from nice independent local shops and some things from chains. Why buy a currency I can only use in one type of shop when my pounds would work everywhere?

As if it being a 'local currency' would be a safety net in a financial crisis - it reflects the value of the GBP. The Scottish pound demonstrates this also.
For this reason it cannot grow strong as an independent currency, so what is the point beyond it being a novelty?

@Pogo_T_Clown
"Please can one of the supporters step up and explain why this scheme will work?"
I'm also waiting for someone to do this. So far its just been people telling us its a good idea and it will be great or using words such as incentivize!
The problem is it won't actually keep money in a local economy. Will Chandos Deli start sourcing their olives from local olive groves on the slopes of the Avon Gorge? Perhaps A Bar Of Chocolate will start getting its supplies from the cocoa plantations that are abundant in Bedminster Down or Kalahari Moon will begin importing its South African products from Southmead.
Of course all these retailers will power their stores by electric generated by solar panels feeding directly into a Bristol energy grid and they'll get their gas from the new lentil powered gas works to be built in Stokes Croft.
The reality is that the only group of people that are actually going to benefit from this is the Credit Union.

Pogo_T_Clown, it'll work because thousands of people in Bristol think it's a good way to keep money circulating in the local economy, thousands of people welcome such an overt way to show their support and thousands of people are unhappy with the multi-national corporations impact the local economy. I know these aren't thing you personally care about, but luckily Bristol does have a lot of people for who these issues are important.
The Brixton Pound (some £65k in circulation) has been working for a few years.
I don't understand some of the comments here: smoosername, where's the incentive? How about the 5% bonus when you buy Bristol Pounds?
There's a lot of information on their website: http://tinyurl.com/7etymsp

If this is being underwritten by the local credit union, then it has merit to those who subscribe to the idea.
If the credit union go bust or have difficulties, then anyone with substantial amounts of this stuff in their possession will have wads of worthless paper.
If this 'cash' is forged, this will undermine it's value and could destabilise this 'currency' and maybe the credit union (depends on the amounts).
As long as the tax payer doesn't have to bail it out if something goes wrong, then let them get on with it. I wont be using it because I normally use cards - if they get stolen, I have a certain amount of protection. Something I can't say about cash.

I believe that the BriPo scheme is going to fail, badly. I can think of reasons why it will fail but I've yet to be given a single reason why it will succeed.
Oh yes, IF it works, it will benefit businesses. But by the same token, IF Adriana Lima agrees to be my girly, I'll be the envy of all my mates.
Please can one of the supporters step up and explain why this scheme will work?